DFS Issues Guidelines on Opting Between UPS and NPS for Central Government Employees

Through notification (No. F. No. FX-1/3/2024-PR) dated January 24, 2025 the Ministry of Finance, Government of India, had notified the Unified Pension Scheme (UPS) for eligible Central Government employees.

The Department of Financial Services (DFS) highlights the deadline for eligible employees and past retirees under NPS to select for UPS as September 30, 2025. All eligible employees are requested to complete their selection process in advance before the deadline to avoid any last-minute difficulties and to ensure timely processing of their requests. However, if any employee chooses to remain in NPS cannot select for UPS after this deadline.

The Department of Financial Services further issued an Office Memorandum, launching a one-time, one-way switch facility for Central Government employees who have already been selected for UPS, permitting them to shift to the National Pension System (NPS) under some mentioned conditions:

I. Under UPS eligible employee can shift to NPS only once and cannot shift back to UPS.

II. The shift should be exercised at least one year before superannuation or three months before voluntary retirement, whichever is earlier.

III. The switch facility will not be permitted in cases of dismissal, removal or compulsory retirement as a penalty or where disciplinary proceedings are ongoing or being examined.

IV. Employees who do not select for the switch within the stipulated time will resume under UPS by default.

V. Employees who choose to remain in NPS cannot opt for UPS after 30th September 2025.

This initiative aims to help Central Government employees with an informed choice in planning their post-retirement financial security. By selecting for UPS, the employees keep their choice for shift to NPS at a later date.

PFRDA also shared a post on X (Previously known as Twitter) regarding the deadline and NPS/UPS-

📢 Important Update for Central Govt Employees

A one-time, one-way switch facility from #UPS to NPS is now available under specific conditions.

🗓 30th September 2025 is the last date to opt for UPS.

Don’t miss the deadline- secure your retirement future today.

👉 Follow us… pic.twitter.com/lR9mkDHVOn

— PFRDA (@PFRDAOfficial) September 18, 2025